Voters pass wellness center tax by 279 votes

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Voters voiced their support for a new Seward Wellness Center May 10.

The measure to assess a half-cent sales tax to help pay for approximately one-third of the facility’s $18 million construction passed on a vote of 1,172 to 893.

That means consumers will pay an additional 50 cents on a $100 purchase.

Bonds are expected to last around 10 years, but that timeline depends on the amount of sales tax revenue generated each year.

Once the bonds are paid, the half-cent tax will go away.

Seward City Administrator Greg Butcher said the next step is for the city council to pass an ordinance to set the sales tax rate and certify election results with the state department of revenue.

The council could decide to begin the tax as early as Oct. 1, but may wait until the calendar year begins in January 2023.

Local merchants will receive notice to adjust their sales tax collection once the start date is determined.

The council also will begin working out terms of the bonds with legal counsel.

“One of the things we’ll be battling right now is interest rates are going up,” Butcher said. “The longer we wait, the higher interest will be, so the council will have to balance that with when they’re comfortable doing so.”

The city will begin working with the Wellness Center Committee to get pledge forms and legal documents in order to fund another third of the project.

The committee and the city are still waiting to hear whether the project will receive grant money to pay for the final third.

They have applied for a Shovel Ready Capital Recovery and Investment Act grant for $5 million.

They also plan to apply for a Federal Coronavirus Capital Projects Fund grant. The fund will grant up to $10 million for projects that serve as a multipurpose community facility.

The Seward Wellness Center would qualify, as it will include a youth center, before and after school care and health elements.

“We are still in line to receive the shovel ready grant,” Butcher said. “That looks promising, with the legislature prioritizing projects that are $5 million and under.”

Butcher said the city will apply for both grants, but it is unlikely to receive them both.

Now that the project has received voter support, the committee and city will revisit applications for other grants ranging from $100,000 to $1 million each.

If the project receives more grant money than expected, it could reduce the amount needed from sales tax.

“The goal is to have the bond amount be the smallest possible,” Butcher said.

Or, the council could decide to use the extra grant funds to add more features to the building or set up a foundation for long-term expenses.

If none of the grants come through, the council will decide whether to keep pursuing the project or nix it entirely.